The President of the Republic (PR), Daniel Chapo, promulgated and ordered the publication, on Monday (29), of the law on the 2026 Economic and Social Plan and State Budget (PESOE), as well as a set of laws that form part of the fiscal reform package, according to a statement from the Presidency of the Republic sent to the media.
According to the document, “PESOE 2026 guides the careful and strategic allocation of public resources, focusing on productive, logistical, and social infrastructures,” highlighting sectors such as transport, digitalization, roads, education, and health.
PESOE 2026 was definitively approved by the Assembly of the Republic on December 13, with 163 votes in favor from the Mozambique Liberation Front (Frelimo) and the rejection by the three opposition benches, which gathered 55 votes.
Despite parliamentary approval, the Government acknowledged a “substantially more adverse” financial scenario compared to the initial proposal of the State Budget for 2026, submitted to Parliament in October, which led to a revision of macroeconomic projections.
In this context, economic growth forecasts were revised downward, set at 1.6% for this year, as well as revenue estimates for the next financial year, reflecting a more demanding economic environment.
In another statement, also released on Monday, the Presidency announced that the Head of State also promulgated the set of laws forming the fiscal reform package approved by the Assembly of the Republic.
Among the promulgated measures are laws amending the customs tariff and its preliminary instructions, the Specific Consumption Tax Code, and the Simplified Tax regime for Small Taxpayers.
The package also includes amendments to the Value Added Tax (VAT) Code, the Personal Income Tax (IRPS) Code, and the Corporate Income Tax (IRPC) Code, thus concluding, according to the Presidency of the Republic, “the legislative production process” of the planned fiscal reforms.
Source: Lusa
